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Hughes9e PPT Ch05

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Chapter 5
Values, Ethics, and Character
© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Chapter Outline
• Introduction
• Leadership and “doing the right things”
• Character-based approaches to leadership
• The roles of ethics and values in organizational leadership
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Values, Ethics and Character
Leadership cannot just go along to get along… Leadership must
meet the moral challenge of the day
• Jesse Jackson, American civil rights activist
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Introduction
Leaders can use power for good or ill
• Leader’s personal values and ethical code may be the most
important determinants of how that leader exercises available
power sources
• Recent scandals involving political, business, and religious figures
highlight the need to consider values and ethics in terms of
leadership
• Scholarly and popular literature have turned greater attention to
the question of ethical leadership
© McGraw-Hill Education
Leadership and “Doing the Right Things”, 1
Leaders face dilemmas that require choices between competing
sets of values and priorities
• Leaders set a moral example that becomes the model for an entire
group or organization
• Leaders should internalize a strong set of ethics, which are
principles of right conduct or a system of moral values
• Gardner and Burns stressed the centrality and importance of the
moral dimension of leadership
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Leadership and “Doing the Right Things”, 2
Qualities of leadership that engender trust
•
•
•
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Vision
Empathy
Consistency
Integrity
McGregor's styles of managerial behavior on the basis of
people’s implicit attitudes about human nature
• Theory X asserts that most people need extrinsic motivation
because they are not naturally motivated to work
• Theory Y asserts that most people are intrinsically motivated by
their work
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Values, 1
Constructs representing generalized behaviors or states of affairs
that are considered by the individual to be important
Play a central role in one’s overall psychological makeup and can
affect behavior in different situations
People in an organization vary in the relative importance they
place on values
• Instrumental values: Modes of behavior, such as being helpful or
being responsible
• Terminal values: Desired end states, such as family security or social
recognition
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Values, 2
Pervasive influences of broad forces at a particular time tend to
create common value systems
• May contribute to misunderstandings and tension in the
interactions between older leaders and younger followers
All generations are molded by distinctive experiences at their
critical developmental periods
• The Veterans, 1922 to 1943
• The Baby Boomers, 1942 to 1960
• The Gen Xers, 1961 to 1981
• Millennials, 1982 to 2005
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Values, 3
Gen Xers have a clearly different view of authority than previous
generations
• Define leading as removing obstacles and giving followers what
they need to work well
• Expect managers to earn their promotions and not be rewarded
with leadership responsibilities because of seniority
Research has found little evidence of a generation gap in basic
values
• Studies show that Boomers, Xers, and Millennials in the managerial
workforce are more similar than different in their views of
organizational leadership
© McGraw-Hill Education
Moral Reasoning and Character-Based Leadership, 1
Moral reasoning: Process used by leaders to make decisions
about ethical and unethical behaviors
• Value differences among individuals often result in different
judgments regarding ethical and unethical behavior
• Not everyone fully develops their moral judgment
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Moral Reasoning and Character-Based Leadership, 2
• Unconscious biases may affect one’s moral judgments, which is why
many organizations are developing programs to develop moral
decision-making competence among leaders
• Effectiveness of such programs depends on understanding the moral
decision-making process
Dual-process theory of moral judgment
• Moral judgments dealing with rights or duties are made by
automatic emotional responses while those made on a more
utilitarian basis are made more cognitively
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Moral Reasoning and Character-Based Leadership, 3
Common but challenging ethical dilemmas involve choosing
between two rights
• Kidder identified the following common ethical dilemmas:
• Truth versus loyalty: Honestly answering a question that may
compromise real or implied promise of confidentiality to others
• Individual versus community: Protecting the confidentiality of
someone’s medical condition when the condition itself may pose a
threat to the larger community
• Short-term versus long-term: Balancing spending time with family
against making career investments for future benefits
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Moral Reasoning and Character-Based Leadership, 4
• Justice versus mercy: Deciding whether to excuse a person’s
misbehaviour because of extenuating circumstances or a conviction
that he or she has learned a lesson
• Kidder offers the following principles for resolving ethical dilemmas:
• Ends-based thinking: Doing what’s best for the greatest number of
people
• Known as utilitarianism
• Rule-based thinking: Following the highest principle or duty
• Consistent with Kantian philosophy
• Care-based thinking: Doing what one wants others to do to him or her
• Similar to the Golden Rule of conduct common in many world religions
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Moral Reasoning and Character-Based Leadership, 5
Research has identified biases that affect our moral decisionmaking
• Implicit prejudice: Subconscious prejudices that affect one's
decisions without him or her being aware of them
• In-group favoritism: Doing acts of kindness and favors for those
who are like us
• Overclaiming credit: Overrating the quality of one's own work and
contributions
• Conflicts of interest: Adversely impact ethical judgments and bias
one's perceptions of situations
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Moral Reasoning and Character-Based Leadership, 6
Ways in which people with firm moral principles may behave
badly without feeling guilt or remorse over their behavior
• Moral justification: Justifying otherwise immoral behavior in terms
of a higher purpose
• Euphemistic labeling: Disguising morally distasteful behavior with
cosmetic words
• Advantageous comparison: Avoiding self-contempt for one’s
behavior by comparing it to even more heinous behavior by others
• Displacement or diffusion of responsibility: Violating personal
moral standards by attributing responsibility to others
• Diffusion of responsibility: Excusing one’s own reprehensible
behavior because others are behaving in the same way
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Moral Reasoning and Character-Based Leadership, 7
• Disregard or distortion of consequences: Minimizing the actual
harm caused by one’s behavior
• Dehumanization: Avoiding the consequences of one’s behavior by
dehumanizing those who are affected
• Attribution of blame: Justifying one's immoral behavior by claiming
it was caused by someone else’s actions
Components of moral potency
• Moral ownership
• Moral courage
• Moral efficacy
© McGraw-Hill Education
Avolio and Associates: Components of
Ethical Leadership
Moral person
• Principled decision-maker who cares about people and the broader
society
Moral manager
• Makes ethics an explicit part of the leadership agenda by
communicating messages of ethics and values and by modeling
ethical behavior
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Character-Based Approaches to Leadership, 1
Authentic leadership
• Authentic leaders exhibit consistency among their values, beliefs,
and actions
• Are self-aware
• Self-consciously align their actions with their inner values
• Study of authentic leadership has gained momentum because of
the following beliefs:
• Enhancing self-awareness can help people in organizations find more
meaning at work
• Promoting transparency and openness in relationships builds trust and
commitment
• Fostering more inclusive structures and practices can help build more
positive ethical climates
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Character-Based Approaches to Leadership, 2
Servant leadership views serving others as being the leader’s
role
• Characteristics of servant leaders
• Listening
• Empathy
• Healing
• Awareness
• Persuasion
• Conceptualization
• Foresight
• Stewardship
• Commitment to others’ growth
• Building community
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Roles of Ethics and Values in Organizational
Leadership
Organizations have dominant values just as individuals do
• Values represent the principles by which employees are to get work
done and treat other employees, customers, and vendors
• Leaders in an organization fail because of a misalignment between
personal and organizational values
Top leadership’s collective values play a significant role in
determining the dominant values throughout the organization
• Many of the most difficult decisions made by leaders are choices
between opposing values
• Leaders must set a personal example of values-based leadership
and ensure that clear values guide everyone’s behavior in an
organization
© McGraw-Hill Education
Leading by Example: The Good, the Bad, and the Ugly, 1
One of the most quoted principles of good leadership is
“leadership by example”
• Research shows that role models can be characterized using the
following categories of attitudes and behaviors:
• Interpersonal behaviors: They show care, concern, and compassion for
others
• Basic fairness: They show fairness to others
• Ethical actions and self-expectations: They hold themselves to high
ethical standards and behave consistently in both their public and
private lives
• Articulating ethical standards: They articulate a consistent ethical
vision and are uncompromising toward it
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Leading by Example: The Good, the Bad, and the Ugly, 2
Upward ethical leadership: Leadership behavior enacted by
individuals who take action to maintain ethical standards in the
face of questionable moral behaviors by higher-ups
• General quality of an organization’s ethical climate affects whether
or not employees raise ethical concerns
• In ethical climates, ethical standards or norms are consistently and
clearly communicated, embraced, and enforced by organizational
leaders
• In unethical climates, unethical behavior exists with little corrective
action, and misbehavior may even be condoned
© McGraw-Hill Education
Creating and Sustaining an Ethical Climate, 1
“Fronts” of leadership action required to create an ethical
climate
• Formal ethics policies and procedures
• Core ideology
• Integrity
• Structural reinforcement
• Process focus
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Creating and Sustaining an Ethical Climate, 2
Principle-centered leadership asserts a fundamental
interdependence between the personal, interpersonal,
managerial, and organizational levels of leadership
• Interdependence between the levels posited in principle-centered
leadership is similar to the conceptualizations of authentic
leadership
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Summary
• There is a relationship between ethics, values, and leadership
• It is not just the content of what one believes is right and
wrong but how one makes moral or ethical judgments
• Ethical dilemmas often involve a choice between two “rights”
rather than choices between what is right or wrong
• Recent research has explored the interdependencies between
effective leadership and particular value systems
© McGraw-Hill Education
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